Structural Reform for Economic Growth
2017-11-30
Zhang Xiaojing
Source：
Australian Economic Review
Abstract:
This article examines the role of reform in maintaining economic growth in the circumstances in which work-age is declining more rapidly than total population. Traditional factor-driven growth can still contribute if reform increases labour force participation, most significantly through easing restrictions on rural–urban migration through reform of the household registration system and other means. The other potential contributor to growth in the new era is reform to raise productivity. This requires more fundamental institutional change, which depends on clear visions of the framework for a modern market economy, encompassing the rule of law and stronger property rights.
This article examines the role of reform in maintaining economic growth in the circumstances in which work-age is declining more rapidly than total population. Traditional factor-driven growth can still contribute if reform increases labour force participation, most significantly through easing restrictions on rural–urban migration through reform of the household registration system and other means. The other potential contributor to growth in the new era is reform to raise productivity. This requires more fundamental institutional change, which depends on clear visions of the framework for a modern market economy, encompassing the rule of law and stronger property rights.
-
Download paper
